Nigeria Inter-Bank Settlement System, NIBSS to utilize blockchain for payments.

The Nigerian financial landscape is experiencing a significant shift as the Nigeria Inter-Bank Settlement System (NIBSS) partners with Zone, a Nigerian fintech that has evolved into blockchain network specifically built for fiat transactions. 

This partnership aims to leverage blockchain technology to enhance the Point of Sale (PoS) ecosystem.

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Significance of the Partnership

NIBSS, as the central switch in Nigeria, facilitates interoperability and the exchange of data between traditional financial systems and payment gateways. With this partnership, NIBSS integrates into Zone’s blockchain, enabling Payment Terminal Service Aggregator (PTSA) functions. As a result, institutions on Zone’s network can directly transact with each other, bypassing traditional card transaction routing through merchant and cardholder banks.

“This partnership with NIBSS is a testament to the transformative power of blockchain technology in payments and more generally in the financial sector as a whole.

“It demonstrates how blockchain technology can enhance regulatory oversight functions while simultaneously streamlining operations for service providers and delivering delightful experiences to end-users”, Obi Emetarom, CEO and Co-founder of Zone stated.

Premier Oiwoh, the Managing Director and CEO of NIBSS, stated that the partnership will transform the ecosystem, offering improved operational efficiency, cost savings, and expanded financial inclusion across the country.

Zone’s Core Objective

In June 2024, Zone launched a PoS payment gateway that operates with a decentralized architecture, unlike centralized systems provided by other entities like eTranzact and Interswitch. 

Zone aims to use blockchain technology to speed up transaction settlements, automate chargeback resolutions, and improve interoperability across the PoS value chain.

Zone’s role as a PTSA is crucial for the standardization of PoS machines. This ensures that banks and financial service providers can comply with the Central Bank of Nigeria’s (CBN) regulations while benefiting from more seamless PoS transactions.

Notably, three major financial institutions—First Bank, UBA, and Zenith Bank—have already integrated with Zone’s decentralized payment network. This is seen as a strategic move, positioning Zone to revolutionize the financial landscape in Nigeria by enabling more efficient, transparent, and inclusive payment processes.

Conclusion

According to Obi Emetarom, CEO and co-founder of Zone, the company is setting a new standard for reliable, frictionless, and interoperable payments by leveraging blockchain technology. With this partnership, Zone is driving innovation in the Nigerian financial system and challenging the status quo of traditional finance.